Acknowledgement

This report contains operations of ORIX leasing Pakistan Limited in detail as far as I could find out. I personally visited, collected data from internet and necessary documents provided to me by ORIX officials; that helped me in completion of this report. The report starts with a slight introduction to fertilizer industry and then ORIX introduction is given, highlighting its salient features, facilities, products and management. Afterwards a comprehensive detail of ORIX inventory management, supplier management, forecasting and production processes are given. I dedicate this report to my teacher Sir Hayat M. Awan who assisted me throughout the semester in operation·s management course, and my fellows who were always there to help me out in ups and downs.

ORIX Leasing Pakistan Limited
History and Prospects:
ORIX Leasing Pakistan Limited began operations in January 1987, as a joint venture between ORIX Corporation, Japan and local sponsors. ORIX Corporation is Japan s leading diversified financial services institution with assets in excess of US$ 50 billion and subsidiaries and associates in 21 countries. Following the footsteps of its Japanese parents, OLP has played a major role in promoting the leasing industry Pakistan. Its strength lies in an extensive branch network, a diversified portfolio of over 3000 clients, a wide range of financial products, personnel development and office automation.

Operations:
Since the start of operations in January 1987, the Company has written leases totaling Rs 15.54 billion. The Company has an asset base of Rs. 6.1 billion, net worth of Rs. 926 million and earned a pretax profit of Rs. 156 million for the year ended June 30, 2000. The Pakistan Credit Rating Agency has rated the Company s short and long-term debt as A1+(A one plus) and AA- (double A minus) respectively. The Company enjoys the highest Credit rating in the leasing sector. The Company s Head Office is in Karachi with branches in Lahore, Islamabad, Peshawar, Faisalabad, Hyderabad, Multan, and Sialkot. The company serves as the regional base for ORIX Group s activities in the Middle East and North Africa. It manages joint venture leasing companies in Oman and Egypt. The Company has recently established a joint venture leasing company in the Kingdom of Saudi Arabia. The Company is also a founder shareholder of ORIX Investment Bank Pakistan Limited.

Business Activities:
The Company s main business is leading of moveable assets primarily industrial machinery, commercial vehicles and passenger cars. The Company provides lease financing to both large and small businesses. Lessees include public and private limited companies, partnerships, and sole proprietorships. The Company specializes in providing lease financing to small and medium size businesses. The Company has also been active in micro enterprise financing since inception and has been given special lined of credit for micro enterprises by multi lateral institutions, which include the World Bank, FMO (The Netherlands Development Finance Company) and the Swiss Development Agency

Certificate Of Investment (COI S): Offering investment plans matching the needs of our valued customers. This has resulted in a high degree of risk diversification through sectoral and asset class diversification with risk spread over a large client base with lower per party exposure. . These include installment loans for household appliances to corporate employees. and provision of vehicles and equipment on operating lease. Strategic Focus The Company s business strategy is to concentrate on providing lease finance to small and medium sized enterprise. auto leasing to salaried employees. Micro Enterprises Lease: Financing for cottage industries and unorganized sector entities. Operating Leasing: Providing productive assets on short-term rental basis. At the same time. ancillary financial services have also been added to its product range. the Company also competes actively in the big-ticket lease market where target lessees comprise local and multinational blue chip corporate. Automobile Leasing: Vehicle leases for individual and corporate clients. selfemployed professionals and businessmen.Other business areas: While lease financing remains the Company s core business. Consumer finance: Allowing corporate employees to acquire domestic appliances. OLP s current portfolio of financial services includes: Corporate Finance Lease: Providing industrial commercial machinery and transportation equipment to corporate sector.

The Company s policy on internal diversification is to enter into fields closely allied to leasing to reduce risk and make best use of available expertise within the ORIX Group of companies. the Company uses its existing offices to source business in adjoining cities through periodic visits by marketing teams and intends to continue this strategy. the Company has shifted emphasis to vehicle leasing over the past three years and this has been the business focus since then. Vehicles provide greater comfort in the event of default due to their high resale value. To further extend it s market reach. a high degree of expertise has developed amongst the Company s staff in the various leasing products. rental of equipment and operating lease. the Company has primarily developed its leasing business and ancillary products such as consumer finance. Recognizing the potential for investment banking in Pakistan. The Company has eight marketing offices located in the Country s major industrial cities.Product Development Since inception. as under current market conditions. Accordingly. The Company started operating lease two years ago and is now among the market leaders in providing generators and communication equipment on short-term rental basis. the Company has entered into related ancillary businesses of consumer finance and auto lease for individuals. plant and machinery has low residual values. To further diversify revenue sources. Diversification A major strength of the Company is its ability to maintain a highly diversified portfolio with low single party exposure. To make up for the decline in machinery leasing. OLP established ORIX Investment Bank Pakistan Limited (OIBP) in 1995. The Company will continue to target it s niche market of small to medium size lessees with low exposures and will only entertain big-ticket leases where spreads are reasonable and credit risk is good. as marketing results in smaller cities have been good. . This technical expertise of the Company s management is being fully utilized in the various job placements in the joint venture abroad. Assets Class and Strategic Shifts Economic slowdown and low capital formation has resulted in weak demand for plant and machinery.

hire purchase and consumer finance. factoring.Area of Activity Fund Based Activities Leasing remains the Company s main activity. The Company s long term funding has traditionally been provided by multilateral lending institutions while local financial institutions have provided the Company with medium and short term funds. However. Resource Mobilization The Company offers Certificates of Investment (COIs) with varying maturities ranging from 3 months to five years. etc. A key factor in the Company s profitability has been its ability to raise finance for its business at competitive rates. The Company s sources of funds are diversified and continuous efforts are made to broaden this base and ensure that the ratio of short term to long-term funds remains satisfactory. the Company has diversified into different areas of leasing such as operating lease. Non-Fund Based Activities Non-Fund based activities include technical advice which the management of the Company has been providing to its associated companies in the region. Company s long term financing sources include: International Finance Corporation Asian Development Bank FMO (Netherlands) IBRD (World bank) The Company follows a conservative policy of ensuring that the average maturity of its borrowing exceeds the average maturity of its lease portfolio. The Company aims to earn sufficient spread to enable the Company to be cushioned against major shifts that might occur in future interest rates .

849 million and in 2001 exceed 5. OLP also contributes to the Group by referring business and investment opportunities in Pakistan to Group companies. OLP enjoys good relations with the ORIX Group. management is left free to pursue development of the Company. Malaysia and Australia under an exchange program. where foreign shareholders provide the technical know how and local partners support through funding and market knowledge. Relationship with ORIX Group A significant factor in OLP s development over the past decade has been the harmonious relationship and complete understanding between its foreign and local sponsors. enabling it to capitalize on the expertise of other Group companies. 4. The Company s lease disbursement in the past two years (1999 & 2000) exceeds Rs. Over the years. 700 million realized from the present issue (first tranche) will be used to finance new business volumes. The Company has traditionally relied on International and domestic lending institutions to meet it s medium to long-term funding requirements and the Company sees TFC s as a instrument to diversify its funding sources. The total amount of Rs. OLP s staff has visited Group Companies in Japan. Thailand. This partnership is a model for successful joint ventures.Use of Proceeds The TFCs are being issued for purposes of writing new leases and other business as permitted under the Company s Memorandum & Articles of Associations. The Company anticipates doing the same in other Middle East countries as it expands its international presence. With cohesion at Board level.1 billion and the business requires term financing since leases being written are for three years or longer period. Singapore. . which sends one or two employees of OLP for overseas training every year.

9 million (Pak Rs. 13. 73.727.9 million compared to EP 24.25% of equity and provides management support.3 million).1999.4 million (Pak Rs. The Company continued to focus on needs of small and medium sized businesses.6 million). For the year ended December 31. in which ORIX Leasing Pakistan Limited holds 20.1.4 million) and increased its asset base to RO 29.04 million (Pak Rs.84 billion) last year and gross lease receivables increased by 33% to RO 24 million (Pak Rs. 2000. 719. 368. For the year ended June 30.719 (Pak Rs. Oman ORIX had total assets of RO 22. the Company earned a pre-tax profit of RO 455. 30.3. 3.989 (Pak Rs 92. trading and contracting. construction.2 million) last year. Oman ORIX leases all type of assets including motorcars. Japan and ORIX Leasing Pakistan Limited each hold 23% of ORIX Egypt s equity.61.5 million (Pak Rs.47 million). Oman ORIX S Head Office is in Muscat and during the year the Company extended its geographical reach by opening branches in the cities of Sohar and Salalah. information technology equipment and plant and machinery. construction and manufacturing.0 billion) and a net worth of RO 5. net profit after tax rose by 26% to Rial Omani (RO) 684.1 million) enabling the Company to declare a dividend of 10% and a bonus of 2.8 million) was more than double last year s profit of EP 0.7 million (Pak Rs. .460.24 billion).45%. Purchase cost of new business written during the year increased to RO 16. which enables it to diversify risk and earn good spreads.6 million (Pak Rs.3.403 (Pak Rs.8 million) from EP 30.Associated Companies: Overseas Joint Ventures Oman ORIX Leasing Company SAOG (Oman ORIX): Oman ORIX.397 million (Pak Rs. IN 1999.33 million) from RO 542. continues to show strong growth in volumes and profits.9 billion). The Company s lessees include individuals.28 billion) compared to RO 13.3 million(Pak Rs.1999.2. earthmoving and transportation equipment.9 million (Pak Rs. Business volume increased by 57% with disbursements of EP 38. ORIX Egypt s profit before tax of Egyptian Pounds (EP) 2. Gross lease receivables increased to EP 47. As at December 31. 577. ORIX Leasing Egypt SAE (ORIX Egypt) ORIX Corporation. small and medium size companies and large sub contractors in diverse economic sectors including services.3 million (Pak Rs. The Company started operations in November 1997 and has established a good business base.19 million (Pak Rs.

Japan (20%). . The Company will be a pioneer of leasing in Saudi Arabia. Saudi ORIX Leasing Company will start with a paid up capital of Saudi Riyal 60 million. equivalent to approximately Rs. Saudi Investment Bank (30%) and a private business group consisting of eminent Saudi bankers and businessmen (jointly holding 30%). International Finance Corporation (10%). ORIX Leasing Pakistan proposes to take 10% equity in the new venture together with other sponsoring shareholders ORIX Corporation.Saudi ORIX Leasing Company (Saudi ORIX) Saudi ORIX is under formation and is expected to commence operations by the end of this year. As the largest economy in the Gulf with the biggest oil production in the world. Saudi Arabia offers immense potential for leasing.900 million at current exchange rate.

Mohammad Qamrul Haq Director Mr. Sialkot 6. Japan and ORIX Leasing Pakistan Limited hold 20% and 15% respectively of OIB s equity. Peshawar 7. Muhammad Mazharuddin Director Mr.28 million from Rs.2000. structuring and placement of capital market debt products.5% to Rs. For the year ended June 30. Board of Directors: Mr.46 billion. which include corporate advisory services. Shaheen Amin Director Mr. Shakirullah Durrani Vice Chairman Mr.Joint Venture in Pakistan ORIX Investment Bank Pakistan Limited (OIB) ORIX Corporation. Lahore 3. Which are as follows: 1. project packaging. issuance and discounting of bankers acceptance and treasury operations. Masatoshi Yokota Director Mr. Yoshihiko Miuauchi Chairman Mr. Hyderabad . The bank continues to concentrate on maintaining a high quality loan portfolio while seeking to improve feebased income from advisory services. 1.OIB had total assets in excess of Rs. Islamabad 4. Takeshi Sato Director Mr. At June 30. Faisalabad 5. Humayun Murad Chief Executive Branches of ORIX Leasing Pakistan Limited Head Office is in Karachi. Karachi (Head Office) 2. There are total 8 branches of ORIX. 2000 OIB s profit before tax rose by 37.44. OIB is primarily engaged in providing a range of investment banking products. Multan 8.2 million last year.32.

Rental Recoveries 5. Business Control department 4. Hard Ware Section 12. Rental Collection department 10. Consumer finance services 13. Which are as follows: 1. Information System development 11. Operating lease Marketing department The principal responsibilities of the marketing department are identify customer need for credit. Mostly bigticket files credit analysis is done . Marketing department 2.Departmentalization of ORIX Leasing Pakistan Limited There are total 11 departments in Karachi Head Office of ORIX Leasing Pakistan Limited. Involve in searching and developing new clients and manage good relationship with them. Auto lease 14. prepare detailed report on lessee s financial position and submit it to higher-ups for approval. By evaluating different environmental conditions it set guidelines for credit evaluations. Credit department 3. Administration department 6. Treasury department 9. carry out credit analysis. Finance & Accounts department 8. They also evaluate the documents submitted by the customers prepare the files (approval and payment) and then send it for checking to the Business Control department Credit department This department define broader based credit polices for the Company. Human Resource department 7.

Rental Recoveries The cases. renovation of offices. for employment made broad based policies. annual leaves. development of the human resource. Also it deals with the hiring and firing of the employees. Human Resource department This department involve in the activities such as planning of the human resource. arrangement of inter branch tours etc. which are signed by the customers. annual reviews for promotion. In short it can be said that it deal with all the general administration matters. rents of offices. It operates the company s bank accounts and maintains the record of payments and receiving. . They also maintain the record of these documents. employees in house training sessions etc. It maintains the record of all the business transactions. utilities bills. are re-checked here. The recovery process is carried out by various means such as: Repossession of vehicle Legal action By customer consent Administration department They handle all the office matters related with office administration such as office vehicle maintenance. In short we can say that it deals with all the affairs related with the employees of the company such as salaries. They handle the matters related to insurance of the asset such as arrangement of insurance. This department also set rules and regulation for the employees and employer or redefined them. bonuses. which require special handling regarding recovery of overdue rentals. arrange orientation for new employees. Finance and Accounts department It maintains company s accounts records. formalized job description.Business Control department The legal documents. evaluate employees and nominate for different courses. maintenance of office equipment. insurance claims etc. promotions. set employees packages etc. go to rental recoveries department.

customer grading. The integrated computer system has the information about customers history. Also it handles the repayment of the loans. Information System Department 1. On branch level it facilitate the account opening or provision of over draft. This department is responsible for the development and continues up gradation of the information systems. which are taken by the company. contract information. Branches send statement of deposits to this department and it is then feeded it in the computer and debt notes are generated. Treasury department This department manages and arranges the financial resource for the company as and when required. The finance is required for the disbursement activities. Rental Collection department This department involves in the activities like physically collecting the rentals on due dates and updates the records by feeding the date about the rentals collection. So the basic function of this department is the money management. Software development and data maintenance. salary database etc. rental repayment records.This department arranges internal audits. On the basis of data generated at different locations this system generate required reports. Recently on very shorter scale they are developing software for different companies on their demand. Hard ware section They are responsible for the replacement of the hard ware of the computer also they repair if there is any fault occur in the hard ware of the computers. It also manages the holding financial resources of the company. customer exposure. It also facilitates external audits by State Bank of Pakistan or by different audit agencies. . Presently it is working for connecting all the braches on line. 2.

For every type of asset there is separate asset manager. Companies gave undertaking that the rentals will be deducted form the salary of the employees and it will be paid to ORIX in one check. It gives air compressors on lease to civil aviation. bikes etc. They provide different features of insurance such as the individual life insurance are also included in it. In the beginning they have provided this service to the employees of the multinational companies such as PIA. Delivery vans are given on lease to different distribution companies on daily bases. But now this service can also availed by the general public. Auto lease They finance automobiles to individuals including businessmen. Transportation vehicles such as big containers and traulas are given on lease to different companies for moving their goods. which are expert in maintenance of these assets. Operating lease (Rentic Division) This department provides various types of assets on rental basis such as: Power generators Air compressors Satellite equipment Delivery vans Luxury buses Transportation vehicles ORIX has wider range of diesel and gas power generators. Satellite equipment is used for wide area computer networking it gives it to different companies and banks. corporate employee and self employed professionals. The lease period is 3 to 5 years and insurance is included in the rentals. Engro chemicals etc.Consumer Finance Services This department gives household appliances on hire purchase basis to the individuals such as refrigerators. microwave ovens. Luxury buses are given on lease to different multinational companies. . These asset managers are appointed by the companies or firms or business houses. It gives them on short-term lease. computers.

Benefits of operating lease Off Balance Sheet Financing As the asset is returned to ORIX at the end of the contract. Customizable The package can be tailored for the requirements of your organization. No capital budgeting is required. which results in lower rentals for the user as the financial costs are significantly reduced. operation. Lower Rentals As the asset is not completely depreciated therefore it carries higher residual value. Furthermore operating lease allows you to: Complete solution as per user demand Hedge against technological obsolescence and inflation Asset without investment Better utilization of tax benefits Conservation of credit lines Time to concentrate on core business Take advantage of the lessor s purchasing power . Resource allocation flexibility Operating lease allows your business greater flexibility in terms of utilization of the capital and insulates your business against the risk associated with capital investments. Value added comforts Operating lease can bundle together various services required with the asset such as maintenance. therefore it remains off balance sheet thus improving the return on assets. insurance and replacement of the asset in one value added package. the transaction is a pure operating lease.

The major reasons for this success were availability of cheaper funds due to which they have low rates. Also ORIX is providing doorstep services to its customers. they start providing factoring services and they have exploit new markets Comparison with competitors ORIX is providing diversified financial services to its customers.Historical success In the recently closed financial year they got the historical success by achieving disbursement of Rs. operating lease. consumer finance services.5 billion. they have offered new products in CFS and operating lease. auto lease. They are providing much better rates in leasing as compared to their competitors because cheaper funds are available to them. Critical Success Factors Today OLP occupies a leading position in the leasing industry. term finance certificates and hire purchase. The person who generates business he has to build good business relations with the customers. The company s success may be attributed to its: Marketing expertise Funding ability Branch network Technical ability based on the world wide experience of the ORIX group . It is a multinational company and has a good reputation in the financial market due to which they can get better funds in the local money market. They are providing corporate lease. Similar person deals with the customer from taking of the lease proposal to follow up so he is building a long-term relation with a customer. They believe in providing personalized services to their customers.

As per the scheme ORIX will establish its counters in selected UBL branches in the cities where ORIX does not has its own offices. Moreover ORIX plans to increase its business and profitability by introduction of new products.FUTURE PLANS OF ORIX LEASING PAKISTAN LIMITED Presently they have entered into a strategic alliance with United bank limited to introduce leasing business in previously untapped areas. Sargodha. In the first phase such 5 counters will be established in Rahim Yar Khan. . Bahawalpur. The operations will eventually be extended to other locations. expanding the operating lease and CFS business etc. Sahiwal and Gujranwala.

the lessee determines selection and price.ORIX Leasing Pakistan Limited Multan Branch ORIX Leasing Pakistan Limited Multan Branch established in February 2001 on LMQ Road Trust Plaza. Sale and Lease back agreement Direct lease is mostly of Automobiles and office equipment. Machinery 3. 1. Direct Lease 2. Equipment selection and price In all cases. Office equipment In corporate lease there are two modes of leases: 1. ORIX purchases the equipment to the lessee s specification. Corporate Lease 2. In Corporate lease they are offering finance against these assets: 1. and pays the vendor in full when the equipment has been delivered and accepted by the lessee. Automobiles 2. In this case ORIX buys the asset to be leased directly from the vendor and then leases it to the lesse. So customer purchase machinery himself and sell it to ORIX than from ORIX he leases it back. Multan Branch is offering three types of leasing. . In this case ORIX lease on the cost of the machinery custom duties are berried by the customer. Auto Lease 3. Upon approval of a lease. In sale and lease back agreement they are giving mostly machinery. Hire Purchase Corporate Lease In this lease the asset is leased in the name of the Company.

Self-Employed Person (Professional) 3. equal or uneven payment. The interest rate and the deposit rate in corporate lease are set by negotiation with the lessee. for advance or arrears payment.Payment Rental payments are usually due in advance. Businessman In auto lease brand new cars are leased to the individuals. The minimum down payment is 10%. Maximum leased period is 3 to 5 years. A deposit is usually required at inception of the lease contract. In corporate lease there is option that the asset either insured by ORIX or by the lessee. Lease can be structured on lessee requirement such as monthly or quarterly payments. Auto Lease: Auto lease program was launched in January 1997 with all the cars dealers manufacturers through their authorized dealers in order to market individuals falls under three categories as follows: 1. Corporate Employee 2. The insurance of the asset in this case is arranged by ORIX. several options are normally available to the lessee: The equipment can be returned to ORIX The lease can be renewed on a year-to-year basis at a greatly reduced annual cost The lease may purchase the equipment at the residual value of the asset. Minimum down payment is 20% and minimum interest rate charged is usually from 19% to 23%. . Length of lease The minimum lease term is 3 years and this can be extended to five years depending on lessee s requirements Expiration of lease At the expiration of lease.

Hire Purchase: Hire Purchase is same as lease the only difference is lease period. . Ensure recovery of over dues and maintenance of relevant records. Lease period is 1 to 3 years and this plan is offered to both salaried person and businessman. They are offering Honda CD 70 and Honda CG 125 with a minimum down payment of Rs. which is less than 3 years. Target Accomplishment: These people work as a team member to assist team leader in achieving the targets. Honda Easy Purchase Plan ORIX Leasing Pakistan Limited on 2nd July 2001 launched Honda Easy Purchase Plan with the cooperation of Atlas Honda in all eight cities where it has its branches. household durable is given on installment. Accounts department Credit and Marketing department In credit and marketing department the designation of the working staff is credit and marketing officer. In higher purchase automobiles.000. Departments in Multan Branch There are two departments in the Multan Branch. At presently only one person is working in this department other three persons are yet to be appointed. Credit and marketing department is responsible for achieving assigned targets and in developing business. 1. 25. Credit and Marketing department 2. Principal activities of the department include: Business Development: Credit and marketing people strive to generate corporate clients for the company and define strategies to retain them.

courier service. Prepare credit analysis report of lessee. petrol and hotel bills payment. Dealing in other branch expenses such as telephone. Involve in searching and developing new clients and manage good relationship with them. Accounts department The designation of the person working in accounts department is Assistant Accounts . electricity. They try to contribute and meet targets as a part of a team. The main responsibilities of the assistant account are as follows: Cash and cheques holding and preparation of relevant registers and statements Purchase of stationery for office use. Interact with Rentals department for daily rental updates. . The people working in the credit and marketing department identify the customer need for credit. Paper filling of contract and confidential files. Maintenance of contract papers. Credit Approval: They coordinate with team leader for credit approval. carry out credit analysis. At this time only one person is working in this time.Follow Up: They collect and follow up rentals in order to assist Rental department in their operations. prepare detailed report on lessee s financial position and submit it to higher-ups for approval. Makes statement of deposit. Submit lessee s financial standing to top management for the credit approval. complete lease execution documents for credit approval and contract execution. Reporting: They prepare various reports and documents to submit them to concerned authorities for further proceedings. Responsible for recovering rentals on due dates and overdue rentals as well.

In other case marketing and credit officer himself contacted the company or individual and give them the lease proposal. Approval of Lease proposal If the company or individual accepts the terms and conditions of the lease proposal they give the lease acceptance to ORIX. Original / Copy of recent Pay slip 6. Copy of last six months Bank Statement 4. Marketing and credit officer give this information to the customer. Copy of National Identity Card 2. He gives them lease proposal in which terms of lease are mentioned about their selected lease option. Copy of recent Utility Bills (Residential) in his / her name 3. Copy of Ownership Documents or Rent Agreement of the residence 5. A letter from employer confirming:Date of joining Designation Salary Package . Submission of the required documents by the customer Marketing and credit officer ask customer to submit the required documents for getting asset on lease which are as follows: For an Employee 1.Process of Lease Process of lease consist of following steps: Contact of customer for lease information First of all the company in case of corporate lease or the individual in case of auto lease contacted the ORIX for getting information about the lease options and terms.

Any of the recent utility Bills (Residential) 4. Copy of National Identity Card 2. 5. Copy of Last Six month s Bank Statement For a Businessman (Individual) 1. Copy of last three years audited accounts (Balance Sheet. Copy of Ownership Documents or Rent agreement of the residence 3.For a Self-Employed Person (Professional). Copy of Last two years Tax Assessment Statements. Copy of National Identity Card 2. Copy of Last two years Tax Assessment Statements. 1. Copy of Last two years Tax Assessment Statements. Copy of Form 29 6. Any of the recent utility Bills (Residential) 4. Copy of Professional Degree 5. 7. Copy of Last Six month s Bank Statement 6. 3. Copy of Last Six month s Bank Statement 5. Like Doctors / Lawyer etc. Copy of Membership Evidence in case the applicant is a member of any professional organization 6. Copy of Driving License For a Business (Corporate) 1. Copy of Ownership Documents or Rent agreement . Copy of Ownership Documents or Rent agreement of the residence 3. Financial statement (audited) or Management Accounts. Copy of Certificate of Incorporation 8. 8. If audited Financial Statement are not available. Copy of Form A 7. Copy of National Identity Cards of all partners (if partnership) 2. Profit & Loss Account) 4.

If the business is on rent then their deed of rent or ownership documents. Copy of individuals NIC 2. 9. Two fresh snaps 5. Also marketing and credit officer personally visited the customer s business place to verify the information provided by the customer. income statements etc. Copy of last six months paid utility bills 4.) ratios analysis are conducted to measure the financial strength of their business. Analysis of the credit worthiness of the customers After the submission of the documents by the customer credit worthiness of the customers is evaluated for giving them asset on lease. Bank manager s certificate.For Honda Easy Purchase Plan these documents are required 1. For businessmen copy of tax return of their last assessment. Individuals (employee) credit worthiness is evaluated from their salary slip and bank statements. Copy of NIC of two guarantors 6. From their financial statements (balance sheet. From these documents they come to know the monthly income of the customer and deposited amount in the bank account. . Individuals (businessman) credit worthiness is evaluated from the bank statements they gave from the bank statements they done the volume test to calculate their monthly average revenue. Copy of driving license 3. For salaried persons copy of their appointment letter and salary certificate. 10. 8. Corporate customers credit worthiness is evaluated from the financial information provided by them. Copy of last six months bank statements 7.

000 Manager 1.5 million SR. which can approve by different persons.G. is as follows: Designation Credit Limit Assistant Manager 500.5 million A. Manager 2.5 million Director marketing 5 million Managing director 10 million Executive committee 30 million Board of Directors Above 30 million .M 3.Approval of the lease from ORIX: Credit limit.

Deposit is taken from the lessee and purchase order is issued to the vendor in case of direct lease. In corporate lease two types of files are prepared 1. undertaking indemnity for the use of the asset. In case of sale and lease back first vendor issue sale invoice and cash receipt to the lessee. execution slip. lessee gave these documents to ORIX and issue sale invoice to ORIX. acceptance receipt.Final procedures: After approval of the lease legal documents are prepared and signed by the lessee and lesser. In case of auto lease there is only payment file and all document are kept in it. ORIX then issue purchase order to lessee and leased the purchased asset to lessee. also it include guarantee and indemnity. Payment file Approval file In approval file documents relating to credit evaluation and are kept. . After this lessee rentals are started which can be in advance or in arrear. promissory note. duties and other charges. for import. Approval file 2. taxes. Lease Application Form Summary lease report Annual Reports Lessee information sheet Volume test Bank statements Tax Returns Property documents Purchase certificate Checklist for lessee Payment file In payment file all legal documents are kept such as lease contract. all rental receipts and all other memos related to the leased asset. for insurance premium.

They want to make contracts with them that ORIX will provide household appliances. Multan Branch Ground Floor. They want to provide consumer finance services to multinational companies in this area such as PARCO and CAPCO. Trust Plaza LMQ Road..Future Plans of ORIX Leasing Pakistan Limited Multan Branch In future they want to offer more lease options to its customers such as they want to offer operating lease and consumer finance services. Also Multan Branch always wants to remain ahead of their annual business targets set by the company. For operating lease they intended to target textile sector in which they plan to provide power generators on lease there is a much potential in this sector. ORIX Leasing Pakistan Limited . 1. Multan Tel: 061. automobiles etc on lease to their employees and the company will deduct rental form the salary of their employees and paid it to ORIX. Multan office also planning to expand operation geographically to the surrounding areas i..Y. Fax: 061-4580321 . Bahawalpur and other cities.4518431.e R. Also they plan to target pharmaceutical sector because lots of hospitals are establishing in the surrounding areas of Multan so they wanted to provide medical machinery on lease to them also they wanted to target doctors market for automobile lease which is presently dominated by Al-Falah financing.K.